The total value of presale and new homes in northern Taiwan may hit NT$1.2 trillion (US$40.03 billion) this year, up nearly 30 percent from last year, as developers and builders adopt a more aggressive business approach, the Chinese-language Housing Monthly said in a report.
The latest forecast represents a 20 percent upward revision from its estimate in December last year after the number of new construction turned out stronger than expected in the first half of the year, the report said.
“Developers and builders are becoming more upbeat this year because they expect the effects of unfavorable policy measures, notably the special sales levy, to subside,” Housing Monthly spokesman Ni Tzu-jen (倪子仁) said.
New construction in northern Taiwan totaled NT$632.1 billion in the first half, surging 38.2 percent from a year ago, the report said.
The full-year value may reach NT$1.2 trillion, if the optimism sustains for the rest of the year, Ni said.
Adding central and southern Taiwan, new construction projects could reach a record NT$1.57 trillion, as a significant amount of property funds is migrating southward, the report said.
The total value of new construction projects could hover at about NT$200 billion in Greater Taichung this year and NT$170 billion in Greater Kaohsiung.
New construction grew 8.8 percent to NT$97.6 billion in Taipei for the first six months, and more than doubled in New Taipei City (新北市) to NT$193.3 billion, as relatively affordable housing continued to gain popularity, Ni said.
The trend is more evident in Taoyuan County, where new construction is likely to approach NT$250 billion on the back of demand from first-time home buyers, the report said.
“Low-priced homes will continue to be mainstream products given stagnant wages,” Ni said, adding developers and builders should adjust their pricing strategy accordingly.